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Mexico's Televisa Boosts Cable-TV Position With Cablecom Buy

Dominant Television Broadcaster Continues to Consolidate Its Position in Cable-TV Market

By

Anthony Harrup

Aug. 14, 2014 6:47 p.m. ET

MEXICO CITY—Mexican broadcast and media company
Grupo Televisa
TV 0.46%
said Thursday it has acquired 100% of cable-TV operator Cablecom as it continues consolidating its position in the country's cable television market.

Televisa, Mexico's dominant television broadcaster and biggest provider of pay-TV services, said it converted the 7 billion pesos ($535 million) in bonds that it bought a year ago for around half of Cablecom, and paid an additional 8.55 billion pesos for the rest.

The acquisition adds 1.2 million cable, Internet and phone subscribers to the 5.4 million that Televisa had at the end of June. Cablecom has operations in 16 states.

Televisa is Mexico's biggest television broadcaster by coverage and sales, controlling around 70% of the free-to-air broadcast market.

In March, regulators imposed a number of measures on the company as the country's dominant broadcaster because it has more than 50% of the market. The new laws didn't apply, however, to cable and satellite television, where Televisa also has more than a 50% market share.

America Movil,
the telecommunications company of billionaire Carlos Slim, was declared dominant in fixed-line and mobile telephony. The company has decided to sell assets in Mexico to lower its market share below 50% and avoid the regulations that include the elimination of mobile interconnection charges and forced network sharing with competitors.